The deadline for the completion of qualifying First-Time Homebuyer Credit

purchases has been extended. Taxpayers who entered into a binding contract

before the end of April now have until September 30, 2010 to close on the home.

The Homebuyer Assistance and Improvement Act of 2010, enacted on July 2,

2010, extended the closing deadline from June 30 to Sept. 30 for eligible

homebuyers who entered into a binding purchase contract on or before April 30 to

close on the purchase of the home on or before June 30, 2010.

Here are five facts from the Internal Revenue Service (IRS) about the

First-Time Homebuyer Credit and how to claim it.

1. If you entered into a binding contract on or before April 30, 2010 

to buy a principal residence located in the United States you must close on the

home on or before September 30, 2010.

2. To be considered a first-time homebuyer, you and your spouse -- if you are

married -- must not have jointly or separately owned another principal residence

during the three years prior to the date of purchase.

3. To be considered a long-time resident homebuyer, your settlement date must

be after November 6, 2009 and you and your spouse -- if you are married -- must

have lived in the same principal residence for any consecutive five-year period

during the eight-year period that ended on the date the new home is purchased.

4. The maximum credit for a first-time homebuyer is $8,000. The maximum

credit for a long-time resident homebuyer is $6,500.

5. To claim the credit you must file a paper return and attach Form 5405 (available at http://www.irs.gov),

First Time Homebuyer Credit, along with all required documentation, including a

copy of the binding contract. New homebuyers must attach a copy of the properly

executed settlement statement used to complete the purchase. Long-time residents

are encouraged to attach documentation covering the five-consecutive-year period

such as Form 1098, Mortgage Interest Statements, property tax records or

homeowner's insurance records.

For more information about the First-Time Homebuyer Tax Credit and the

documentation requirements, visit href="http://www.IRS.gov/recovery">http://www.IRS.gov/recovery.